DEFISCALIZE WITH THE PURCHASE OF WORKS OF ART

The purchase of a work of art is most often the result of a crush, the desire to find an original and unique decoration of its interior or the wish to offer an artist's painting to a loved one. .

In addition, it turns out that French legislation allows, in terms of taxation, to benefit from a tax reduction for the purchase or rental of certain artistic works.

So why deny it?

Whether you are an individual or a business, acquiring a work of art is an investment (which can also become an investment, as the value and reputation of the artist can increase in value quite quickly) which can allow you to benefit from advantageous tax provisions .

Acquiring a work of art is first and foremost a pleasure and a dream, but it is also an original and low-risk way to enrich your heritage. In a currently changing art market, building up an artistic heritage is a real opportunity that offers many tax advantages for individuals and companies.

In addition to this, you need to know more about it.

THE CONDITIONS FOR IMPLEMENTING THE TAX DEDUCTION

In addition to this, you need to know more about it.

This deduction was created in favor of companies that purchase original works of art from living artists. Companies benefit from it when the acquired property is exhibited in a place accessible to the public or to employees, with the exception of their offices, during the period corresponding to the year of acquisition and the following four years.

In addition to this, you need to know more about it.

TAX DEDUCTION

The work of art must be included in the fixed assets of the company. The amount of the deduction is entered in a special reserve account. The acquisition price of the work can be deducted in an extra-accounting manner from the taxable result for the acquisition year and the four following years, in equal fractions. The deduction made for each financial year may not exceed the limit of 5 ‰ of turnover.

Example: A company that closes its financial year on December 31 acquires two tables in June 2019 for a total amount of 72,000 euros. This company will be entitled to deduct from its taxable income for the fiscal years 2020, 2021, 2022, 2023 and 2024 the sum of 14,400 euros within the limit of 5 ‰ of its turnover.

An amount equivalent to the deduction made must be entered in a special reserve account on the liabilities side of the company's balance sheet. Of course, as usual, the legislator has provided for everything in the event that the company suddenly no longer has the artistic fiber ... Thus, in the event of transfer of the work of art, or even a levy on the reserve account, the amount relating to the deduction applied is reintegrated into the taxable result for the financial year concerned.

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